consumer behavior test 4

__ online reviews are fake!

1 in 7

Deceptive advertising

1) omits info that is important in influencing consumers' purchases & 2) is likely to mislead consumers Company leaves something out on purpose (it would have influenced your purchase --> mislead or given false info) It is objective * (scientifically proven or tested) Ex: Kashi claimed all natural and organic --> found out most processed of all

example: fast vs slow tempo at a restaraunt

Fast tempo: can speed people up at a restaurant when there is a wait Slow tempo: steak houses at dinner --> stay and eat a bunch of courses

Brand Community members increase brand value and loyalty by:

Increasing symbolic benefits of brand Creating feelings of belongingness Increasing use innovativeness Increasing learning about the brand **offers inclusion

diffusion theory: Consumers go through the Adoption Process at different rates:

Innovators Early Adopters early majority Late Majority Laggards

diffusion theory: Innovation characteristics that affect the Adoption Process:

Relative Advantage Visibility of Need Complexity Divisibility Communicability *Factors that speed us up/slow us down going through the adoption steps (ex: stuck in evaluation stage b/c not enough info)

Reference Group influence increases as:

Visibility of using product/brand increases Necessity of product/brand decreases Commitment to the group increases Relevance of behavior to the group increases Consumer confidence decreases

__ are more temporary than moods

emotions

stimulation

encouraging 1) current owners to talk about brand, and/or 2) prospective owners to ask current owners about brand Referral programs ex: Dove: 2 free bars of soap if you recommend 3 friend to send soap to

situational influence

factors particular to a time and place that do not follow from a knowledge of the stable attributes of the consumer and the stimulus and that have an effect on current behavior situation stands apart from the consumer and the stimulus temporary characteristics

Crowdsourcing

firms request consumer input/WOM online Consumers voluntarily add value to brands How to impact & generate WOM Goal is to help the brand Forums, chatrooms ex: Waze

innovators

first person to try product/service, smallest group buy it the day it comes out tend to be wealthier, younger, riskier the first 2.5% to adopt an innovation

user positioning

focuses on who already uses a particular product/brand Sometimes users are experts Advertising based on someone who has already used it ex: Choosy Moms Choose Jif ex: celebrity endorsements

early majority

general public is catching on the next 34% to adopt cautious about innovations they adopt sooner than most of their social group but also after the innovation has proved successful with others socially active but seldom leaders tend to be somewhat older, less well educated, and less socially mobile than early adopters relies heavily on interpersonal sources of info

simulation

getting a recognized opinion leader to talk about the brand ex: Celebrity endorsement, Snapchatters, Youtubers

sampling

giving the brand away free to 1) opinion leaders and/or 2) consumers

cool colors

green, blue, purple, grey calming, relaxing reduce perceived waiting times expensive products/services --> reduce risk use as dominant interior color: can increase sales & customer satisfaction

Dissociative Reference Groups

groups that we are negatively attracted to as an Ole Miss alum, you don't want to be associated with LSU (wearing the outfit they are wearing OR a brand sponsoring LSU so you don't wanna buy that sports brand)

Aspirational Reference Groups:

groups that we are positively attracted to we want to be members of this group & buy certain products/brands to show people we are apart of this group ex: Ole Miss alumni and fans --> buy ole miss clothes, tickets, etc

crowding

higher crowing leads to: - less browsing - less info used - faster decisions - lower spending - less satisfaction - lower intent to revisit store produced negative outcome for both the retail outlet & the consumer

time

higher time pressure leads to: - Less info search - Less info used - Fewer brands considered - Lower perceived service quality - More suboptimal purchases

trial

hopefully we can try it before we buy ex: sample or test drive a car hands on experience (sometimes we can/cant)

complexity

how difficult is it to understand/use product? the more complex, the harder it is to sell the key is ease of us, not complexity of product

divisibility

how easily can it be tried at little to no cost? ex: if new beer, don't want to just sell it in cases --> give individual option for them to try (1 or 6 pack instead of 24 pack)

communicability

how marketable is it? can you explain to people what it does or the benefits?

visibility of need

how visible is the reason for the need to buy it? ex: if balding on the other hand and people can see your problem you will try to fix it faster b/c more visible

__ is a big thing that brand communities can offer

inclusion

Reference Group influence increases as relevance of behavior to the group __

increases

Reference Group influence increases as commitment to the group __

increases more strongly you relate to the group, the more your behavior changes

Reference Group influence increases as visibility of using product/brand __

increases no one cares about what socks you wear b/c they don't see it but they would care about your watch

awareness

aware brand/product exists someone talking about it like opinion leader or critic

Price gouging

charging a higher than reasonable price after some event (e.g., natural disaster) unethical and illegal

Lower complexity helps with __

communicability

Negative moods increase __ buys

compulsive/impulse

spectators

consume others' content just reading other's reviews/websites

normative influence

consumer fulfills expectations of reference group to gain a reward or to avoid a consequence We align our behaviors w/ reference group b/c we think it will help us fit in "all the cool kids are doing it" Avoid being an outcast/peer pressure Ex: going into elevator --> walk in and face the door not the wall--> want to fit in and don't wanna look weird Ex: fashion

negligence

consumer must prove firm knew an injury may occur & didn't act

strict liability

consumer must prove injury occurred due to a faulty product

informational influence

consumer uses opinions/behaviors of reference group as useful info to guide his/her consumption We align our behaviors w/ reference group b/c we think they have accurate/helpful info Go along with group b/c we think they know more than us (legit source of info) Ex: doctors, dentists

word-of-mouth

consumers sharing info with other consumers verbally or over the internet

creators

create their own unique content more informational in nature ex: YouTubers, bloggers

Online W.O.M

creators critics spectators opinion leaders market mavens crowdsourcing stimulation simulation

External Influences on Consumer Decision-Making

culture, subculture, demographics, social status, reference groups, family, marketing activities

unfulfilled aspirations

desperately want it but cant afford it, so customer steals it instead

late majority

more risk averse skeptical about innovations adopt more in response to social pressures or a decreased availability of the previous product than b/c of a positive evaluation the next 34% to adopt wait to buy until they know product works they read reviews you get better deals at this stage tend to be older and have less social status and mobility than those who adopt earlier

relative advantage

most important factor that affects adoption what does your product offer that is better than competitors? the better the innovation is perceived to meet the relevant need compared with existing methods, the more rapid the diffusion ex: best warranty

early adopters

most important* spread WOM that affect the people behind them (reference group) more influence now that group is bigger --> opinion leaders. Critical reference group opinion leaders in local reference groups willing to take a calculated risk but are concerned with failure use info sources & provide info to others the next 13.5% to adopt

compulsive buys

planned purchases internally and often to alleviate something (bad mood/experience) ex: dad pissed you off so go on a shopping spree with his credit card to make him mad can turn into addict behavior

planned obsolescence

planning the premature discontinuation of a product that performs adequately Ex: iphone 10: they know in one year they will come out with iPhone 11 --> so in one year make the iphone 10 look obsolete so people don't want it anymore Ex: iphone changing chargers

aromas

pleasant smells can increase: -pleasure -attention -memory -time spent -money spent -intent to revisit store

critics

post ratings and reviews let you know if you should buy it or not ex: people that write reviews on Yelp or Amazon

warm colors

red, yellow, orange exciting, invigorating attract attention, drive impulse purchases will raise heart-rates (stimulating) --> get people to move around store, move more quickly

what sense is most closely tied to memory?

scents

We __ select into the subcultures

self (we choose to be in them)

one of the hardest thing for marketers to overcome with social surroundings?

selling these embarrassing products ex: condoms, pregnancy test

market mavens

similar to above, but are knowledgeable about all sorts of products/brands not specialized, jack of all trades, breadth they provide info on product quality, sales, usual prices, product availability, store personnel characteristics, etc a special type of opinion leader tend to be similar to those that they influence

subcultures

subgroups within the larger, or national, culture with unique values, ideas, and attitudes breaking down that culture (share same tastes, values, attitudes) ex: liking the same brand

Antecedent States

temporary individual traits situational factor. It's a characteristic of you (the consumer) that is temporary [mood or being] --> not permanent characteristics that will affect how you shop --> situational (are you in a rush, hungover, sad?)

Momentary conditions

temporary states of being Ex: Being tired...being sick...being broke Consumers only act differently in that moment ex: Buying cheapest beer b/c broke Ex: grocery shopping when hungry Ex: use sun screen on beach trip, may not use everyday

mood

temporary states of feeling Not usually tied to a specific event or object less intense than emotions and may operate without the individual's awareness Ex: feeling happy, sad, cheery, peaceful, depressed

T/F: Our reference groups usually influence us more than marketing techniques do

true

impulsive buys

unplanned, spur of the moment purchase external stimulus trigger ex: buy M&M at checkout or buy ice cream b/c its on sale this time

impulsive buys

unplanned, spur of the moment purchase (external stimulus trigger) ex: buy M&M at checkout or buy ice cream b/c its on sale this time

Asch Phenomenon

we conform to majority rule - even if it doesn't align with our own beliefs "group think" Can be applied in Personal Selling

you can avoid a crowd altogether if a company has a good __

website/app

brand community

a subculture formed around consumers' attachment to a specific product or brand a nongeographically bound community, based on a structured set of social relationships among owners or a brand and the psychological relationship they have with the brand itself, the product in use, and the firm A type of subculture Strong brand loyalty Ex: Beliebers, Dead heads

evaluation

mentally weigh pros and cons of buying

Children account for __ annually in direct and indirect purchasing power in the U.S

$1.2 trillion *one of the most underestimated target markets

__ spent annually on marketing to children in the U.S.

$12 billion

stages in the adoption process

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

how much of all consumer product decisions are influenced by WOM?

2/3

__ of brand preferences persist to adulthood

25%

pathological socialization

Consumers may view misbehavior as a way of getting revenge against companies mindset that big companies deserve to be stolen from (they are making too much $ anyways --> I can steal from Walmart b/c worth billions) justify your decision to steal

ways to reduce time for customers when shopping?

Have good signage around store to help them find things more employees for helping helpful displays (shopper solutions) good website/app Price match guarantees and good warranties (less time comparing in store or may just buy it)

lack of moral constraints

personal values aren't consistent with society (don't care about stealing)

4 aspects of corporate social responsiblity

Sustainability Employee safety Consumer privacy Donations

music

Tempo: slow vs fast Preferences of Tgt. Mkt: Good vs Bad Match - Affects enjoyment, satisfaction, spending, browsing time, perceived service quality, positive word-of-mouth Music is for your customers, not for your employee's enjoyment

why do consumers misbehave?

Unfulfilled aspirations Thrill-seeking Opportunism Lack of moral constraints Pathological socialization

corporate social responsibility

a firm's way to internally regulate, and be accountable for, its impact on society & the environment We can make money and do good for the earth and society Holistic approach to business All 4 aspects are voluntary (donations, sustainability, employee safety, consumer privacy) "doing well by doing good"

reference group

a group of people that we use as a guide for our behavior

consumption subculture

a sub-group of people that share a commitment to a particular product, brand, or consumption activity ex: goth (wear black, eyeliner, etc) we self select into subcultures (we choose to be in them) these groups have: 1) an identifiable, hierarchal social structure 2) a set of shared beliefs/values 3) unique jargons, rituals, etc

opinion leaders

actively sort through, interpret, and provide relevant info about products/brands to others Highly specialized/focused in certain areas depth

Thrill seeking

adrenaline junkies (can I get away with it? Beat the system?)

puffery

advertising that makes exaggerated claims about a product's superiority No direct attempt to deceive consumers This is okay b/c if you are not trying to deceive them or super misleading It is subjective (cant be proven or tested) Ex: Papa Johns (who is to say it isn't better pizza?)

interest

become interested enough to learn more about it start to engage with product/service

Consumer Misbehavior

behavior that can potentially harm the self or others can be unethical and/or illegal Consumers do things that they are not supposed to (products that will hurt you or someone else) Ex: create fake email accounts to get deals Ex: retail borrowing (keep tags on it, wear it, and try to return it for full refund) Ex: trying to beat the self-checkout systems (stealing) Ex: drinking and driving Ex: credit card fraud Ex: shoplifting (inventory shrinkage- ppl steal from you)

consumer problem behavior

behavior that is unacceptable, but seemingly out of the consumer's control Behavior we don't like/think its unacceptable, but out of the consumer's control Ex: gambling or drinking problem

Positive moods increase __ buys

browsing/impulse

adoption

buying a product service stage in which brand loyalty is built

physical surroundings

decor, sounds, aromas, lighting, weather, merchandise display, etc.

Reference Group influence increases as consumer confidence __

decreases lower the confidence, the more likely you will buy these things to help make you fit in

Reference Group influence increases as necessity of product/brand __

decreases more stuff that we want not need

laggards

last to try/when it phases out logically oriented and engage in limited social interactions relatively dogmatic and oriented toward the past adopt innovations only with reluctance ex: buy the iPhone 5 now because its on sale the final 16% to adopt

atmospherics

manipulating physical retail store environment to elicit certain moods/behaviors control outside surroundings (set up physical to get them in certain mood) Do this to appeal to target market (doesn't matter as much what you want --> do what consumers want)

Product liability

the extent to which firms are held responsible when products harm consumers It used to be really hard to prove that company's were liable (negligence) Now, it is guided more by strict liability and it's easier to sue (can just show they got hurt, don't have to prove that companies knew it would before hand) As consumers, we shouldn't like it b/c our prices will end up going up & will decrease their motivation for new innovations Ex: cars so expensive b/c have to cover so much for liability

social surroundings

the other people present in a given situation Consumers change their behavior to conform to group expectations/norms - especially when it's visible to others embarassment driven by: - product type - situation particularly true to those who are highly susceptible to interpersonal influence

diffusion theory: adoption process

the steps consumers mentally go through before trying a new product/service (i.e., an innovation) Awareness Interest Evaluation Trial Adoption

store atmosphere

the sum of all the physical features of a retail environment influences consumer judgements of store quality and image

astroturfing

when companies pay consumers to write 1) positive reviews of them and/or 2) negative reviews of their competitors making a message seem like its coming from another source Pushing an agenda w/o letting people know who's REALLY behind it EX) Samsung hired people to write bad reviews about its competitor HTC McDonalds hired people to wait in line over night in Japan when releasing a new burger fake twitter accounts Companies can use algorithims to distinguish b/w real and fake reviews to protect themselves the problem with online WOM

opportunism

you may not have gone into the store by planning to steal, but the opportunity presented itself and went for it